Gartmore Asset Management of the U.K. plans to launch a series of hedge funds in Japan that use computer-based quantitative analyses to achieve high returns.
The major asset management firm began offering a European share quants fund in December. It now intends to follow that up by establishing a quants fund that invests in Asian stocks.
With the minimum investment set at 100 million yen (US$955,425), the product is targeted at institutional investors, but it will also be made available to wealthy individuals. The product will be sold through Merrill Lynch Japan Securities Co.
Gartmore Asset Management plans to expand the lineup by adding a fund specializing in U.S. shares in June and one that invests in Japanese stocks in September.
The Asian share fund shoots for an annual return of 10 percent, and the European fund aims a little higher at 12 to 15 percent.
These types of products typically incur high management costs because shares are traded frequently. Gartmore’s new products aim to keep costs down by limiting adjustments of asset allocations to around once in six weeks.